02345cam a22002777 4500001000700000003000500007005001700012008004100029100002200070245016100092260006600253490004200319500001500361520095200376530006101328538007201389538003601461690009401497690010201591690008901693690009101782710004201873830007701915856003801992856003702030w18138NBER20180222024346.0180222s2012 mau||||fs|||| 000 0 eng d1 aAizenman, Joshua.14aThe Euro and the global crisesh[electronic resource]:bfinding the balance between short term stabilization and forward looking reforms /cJoshua Aizenman. aCambridge, Mass.bNational Bureau of Economic Researchc2012.1 aNBER working paper seriesvno. w18138 aJune 2012.3 aThis paper analyzes reforms and adjustments in the context of the Euro and the global financial crises. Taking the perspective of the evolutionary approach to institutions, the formation of a new currency area is not unidirectional. The process leading to the euro is an example of a common upbeat and optimistic attitude to the formation of new institutions. Such a Panglossian attitude to policies may reflect built-in fiscal myopia, possibly both at the level of the principal [the policy maker] and of the agents [consumers and households]. Next, the paper reviews the evolution of institutions buffering the stability of unions in the aftermath of crises, where fiscal restraints and the allocation of significant bargaining clout to the Federal Center increase the stability of a union. The paper concludes with an overview of the challenges associated with finding the proper balance between financial integration and financial regulations. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aF02 - International Economic Order and Integration2Journal of Economic Literature class. 7aF33 - International Monetary Arrangements and Institutions2Journal of Economic Literature class. 7aF34 - International Lending and Debt Problems2Journal of Economic Literature class. 7aF36 - Financial Aspects of Economic Integration2Journal of Economic Literature class.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w18138.4 uhttp://www.nber.org/papers/w1813841uhttp://dx.doi.org/10.3386/w18138